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Upturn AI SWOT - About
NEWTZ 
Newtek Business Services Corp. 5.50% Notes Due 2026 (NEWTZ)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
06/06/2024: NEWTZ (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $
1 Year Target Price $
| 0 | Strong Buy |
| 0 | Buy |
| 0 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -15.06% | Avg. Invested days 28 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/06/2024 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 450.62M USD | Price to earnings Ratio - | 1Y Target Price - |
Price to earnings Ratio - | 1Y Target Price - | ||
Volume (30-day avg) - | Beta - | 52 Weeks Range 22.12 - 24.30 | Updated Date 04/14/2024 |
52 Weeks Range 22.12 - 24.30 | Updated Date 04/14/2024 | ||
Dividends yield (FY) 1.32% | Basic EPS (TTM) - |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin - | Operating Margin (TTM) - |
Management Effectiveness
Return on Assets (TTM) - | Return on Equity (TTM) - |
Valuation
Trailing PE - | Forward PE - | Enterprise Value - | Price to Sales(TTM) - |
Enterprise Value - | Price to Sales(TTM) - | ||
Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding - | Shares Floating - |
Shares Outstanding - | Shares Floating - | ||
Percent Insiders - | Percent Institutions - |
Analyst Ratings
Rating - | Target Price - | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Newtek Business Services Corp. 5.50% Notes Due 2026
Company Overview
History and Background
Newtek Business Services Corp. was founded in 1998. It initially focused on providing technology and business solutions to small and medium-sized businesses (SMBs). Over time, Newtek evolved into a business development company (BDC), specializing in lending and financial services for SMBs. In 2022 they spun off their lending business and is now a technology focused fintech platform. The 5.50% Notes Due 2026 represent a specific debt instrument issued by the company.
Core Business Areas
- Business and Financial Solutions: Offers a range of business and financial solutions designed for small and medium-sized businesses, including payment processing, payroll, insurance, and technology services.
- Managed Technology Solutions: Provides managed technology services, including cloud computing, data backup, and cybersecurity solutions, tailored for SMBs.
- Portfolio Investment: Newtek previously operated as a BDC, making investments in and lending to small businesses. This has since been spun off into a separate entity.
Leadership and Structure
Barry Sloane is the Chairman, President, and CEO. The company has a board of directors and a management team overseeing various departments, including finance, operations, and technology. It operates with several subsidiaries focused on specific service areas.
Top Products and Market Share
Key Offerings
- Payment Processing: Offers payment processing solutions to SMBs, enabling them to accept various forms of payment. Competitors include Square (SQ), PayPal (PYPL), and Fiserv (FISV). Market share data is not publicly available for Newtek's specific share, but the industry is highly fragmented.
- Business Lending: Provides business loans to small businesses, filling a gap in traditional lending. Competitors include OnDeck Capital and Funding Circle. Market share data specific to Newtek is not readily available but is a smaller part of the total US market than some of the larger competitors.
- Payroll and Benefits: Offers payroll and benefits solutions to SMBs. Competitors include ADP and Paychex. Revenue from this sector not specified.
- Insurance Solutions: Newtek offers insurance solutions, including business and commercial insurances. Competing with the likes of Progressive (PGR) and Allstate (ALL). Revenue from this sector not specified.
Market Dynamics
Industry Overview
The market for SMB business and financial solutions is large and growing, driven by the increasing number of SMBs and their need for efficient and cost-effective services. Fintech platforms are revolutionizing the traditional SMB support landscape.
Positioning
Newtek positions itself as a comprehensive solutions provider for SMBs, differentiating itself through its wide array of services. Its competitive advantage lies in its integrated platform and customer-centric approach.
Total Addressable Market (TAM)
The TAM for SMB financial and technology services is estimated to be in the hundreds of billions of dollars. Newtek is positioned to capture a portion of this market by offering a diverse suite of services and focusing on underserved SMBs.
Upturn SWOT Analysis
Strengths
- Diversified service offerings
- Strong customer relationships
- Experienced management team
- Focus on underserved SMB market
Weaknesses
- High debt levels associated with Notes
- Dependence on key personnel
- Exposure to credit risk in lending operations
- Increased competitive pressure in fragmented market
Opportunities
- Expansion into new geographic markets
- Development of new products and services
- Strategic acquisitions to enhance service offerings
- Increased demand for digital financial services
Threats
- Economic downturn impacting SMBs
- Regulatory changes affecting lending and financial services
- Increased competition from larger financial institutions
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- SQ
- PYPL
- FISV
- ADP
- PAYX
Competitive Landscape
Newtek faces competition from larger, established players. To compete it needs to maintain a high level of customer service while growing it's technology and AI platforms that allow it to deliver more customized solutions.
Major Acquisitions
National Bankcard Inc.
- Year: 2015
- Acquisition Price (USD millions): 25.5
- Strategic Rationale: Enhanced payment processing capabilities.
Growth Trajectory and Initiatives
Historical Growth: Historical growth should focus on expansion of technology and payment processing segment, rather than past growth as a BDC. Information can be found in NEWT fillings.
Future Projections: Future projections need to be derived from analyst reports covering NewtekOne, Inc. (NEWT). Key areas to watch include fintech solutions adoption among SMBs and new product integrations. Look out for expansion of their cloud services offering.
Recent Initiatives: Recent initiatives include technology partnerships, new service launches (e.g., enhanced payment processing solutions), and efforts to streamline operations.
Summary
Newtek, through its operating company NewtekOne, Inc. (NEWT), is navigating the competitive landscape of SMB solutions, by focusing on tech-enabled, fintech solutions. While its diversified services offer a competitive edge, debt levels and fierce competition pose challenges. Strategic execution in technology, acquisitions, and partnerships are crucial for sustained growth and profitability. Continued success is based on growing its technology footprint and client base and offering new AI based fintech solutions.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC filings (NewtekOne, Inc. (NEWT)), company press releases, industry reports, analyst estimates.
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Newtek Business Services Corp. 5.50% Notes Due 2026
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2021-01-25 | CEO - | ||
Sector Other | Industry Other | Full time employees 162 | Website |
Full time employees 162 | Website | ||
Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments. Under debt investments, it focuses on first lien loans, which have terms of 1 to 25 years; second lien loans, which have terms of 5 to 25 years, and unsecured loans, which are provided to meet short-term funding needs and are repaid within 6 to 12 months. It operates through Electronic Payment Processing, Managed Technology Solutions, Small Business Finance, and Capcos segments. The company originates small business administration loans for the purpose of acquiring commercial real estate, machinery, equipment, and inventory, as well as to refinance debt and fund franchises, working capital, and business acquisitions; and offers small business loan servicing and consulting services to the Federal Deposit Insurance Corporation and various other financial institutions, as well as provides management services. Its electronic payment processing services include credit and debit card processing, check approval, ancillary processing equipment and software to merchants, eCommerce, electronic solutions to accept non-cash payments, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs. The company also provides Website hosting, dedicated server, and cloud hosting services; Web design and development; Internet marketing; data storage and backup and other related services; and ecommerce services, such as payment processing, online shopping cart tools, Website design and Web related services; Accounts Receivable Financing, and The Secure Gateway. In addition, it offers Newtek Advantage, a mobile, real-time operating platform enabling a business to access data on a smartphone, tablet, laptop, or PC for eCommerce, credit/debit transactions, Website statistics, payroll, insurance
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